New Lawsuit Challenges IRS Authority to Enforce Obamacare

Well with all the blackmailing going on using the NSA we know how this challenge will come out already don’t we.

A new group of individuals and small businesses has filed suit to force the Internal Revenue Service to justify enforcement of President Obama’s health care law in states which declined to implement the law’s exchanges.

The suit, filed in the U.S. District Court for the District of Columbia, is joined by several parties represented by Jones Day lawfirm partner Michael Carvin, who co-argued the original U.S. Supreme Court cases against Obama’s law.

‘The IRS rule we are challenging is at war with the act’s plain language and completely rewrites the deal that Congress made with the states on running these insurance exchanges,” Carvin said.

Under Obama’s law, small businesses are exposed to the employer mandate tax only if any of their employees receive the subsidies. The law also exempts some lower-income individuals from its mandate to buy insurance, but the value of the exchange subsidies pushes them out of the exempted range. That forces them to buy the expensive insurance compliant with the law.

These subsidies will only be available, according to the law, in states that set up their own individual and small business exchanges. Yet the IRS ruled in 2012 that whether a state creates an exchange or the federal government creates it, the subsidies apply, along with the mandates that arise from them.